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5. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Boise,

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5. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Boise, Currently, the company produces all of its scooters using a single, manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional. factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Suppose Scooter's Scooters is currently producing 500 scooters per month in its only factory. Its shortenun average total cost is per scooter. Suppose Scooter's Scooters is expecting to produce 500 scooters per month for several yrars. In this case, in the long rur, it would choose to produce: scooters using On the following graph, plor the three SRATC curves for Scooteris Scooters fram the previous table. Specifically, use the groen points ftrimigle Symbol) to ploc its SRATC curve if it operates one factory (SRATCI); use the purple points (diamond symbol) to plot its SRATC curve if it operates two factories (SRATC.); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories iSRATC ). Finally, plot the long-ruin average total cost (LRATC) curve for Scooter's Scooters using the blue pounts (circle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automabcally, In the following table, indicate whether the long run avevage cost curve exhubuts. economies of scole, constant ietums fo scale, or disecooomes of scafle for eoch range of mcooter production

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